Debt Collection Blog

"Relentless Collection Attorneys"

Alan Cohen

A Real Estate Attachment Helps Collect Bad Debt

Superior Court… A supplier’s customer over time ostensibly became a close friend. However, instead of treating his supplier as a close friend, the customer chose to pay all of its other debtors first! After repeated unfulfilled promises, the supplier called me.

I immediately filed suit seeking to attach the debtor’s bank account and real estate. When the Court declined the attachments on an ex parte basis I requested and obtained a “short order of notice”. This allowed me to get back into court fast.

At the next court date, I immediately sought to talk with the debtor before we went before the judge. During my conversation with the debtor, I asked him how he wanted to take care of this mess. In our conversation, it became clear that the debtor now wanted to take care of this long outstanding debt. I told him that I wanted a mortgage on his property and a settlement agreement with an agreement for judgment, which I would hold in escrow to ensure he made timely payments.

Other attorneys may have simply delayed the attachment hearing in reliance of debtor’s promise to give a mortgage.

I am not other attorneys!

Since we were in court already and knowing that people sometimes do not sign settlement agreements as fast as they say they will, I sought an attachment on the debtor’s real estate, which the Court allowed.

When I returned to my office, I drafted the settlement agreement as well as a proposed mortgage. In my correspondence with the debtor, I strongly urged the debtor to obtain independent counsel as I represented the creditor supplier.

It was good that I had gone forward with a real estate attachment because it took over a month to receive the settlement agreement back from the debtor. By obtaining the real estate attachment, I protected my client against the debtor selling his house and moving out of state without paying my client.

With my over 31 years of experience as an effective and ethical business debt collections lawyer, I have seen many tactics used by debtors to delay payment of a debt. Whenever I have the opportunity to obtain security for my client, I take it. My tactics often result in my client’s hearing “KA-CHING” in their pockets.

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